Verso Corporation will permanently shut down the No. 3 paper machine and associated equipment at Androscoggin mill in Maine, USA. The company had already suspended production from the paper machine in January 2017 as a result of declining customer demand.
"Verso is leaving no stone unturned in our efforts to move the company toward sustained profitability in a market where customer demand for our graphic paper products continues to decline,” said, Verso, CEO, B. Christopher DiSantis.
The shutdown will reduce the mill’s annual coated paper production capacity by around 200,000 tons and will affect approximately 120 employees.
"Consistently matching the supply of our graphic paper products with customer demand for them, dramatically reducing our costs and rapidly diversifying our product portfolio into growing markets are essential keys to Verso's future success, and we're relentlessly pursuing all three across the company. Although the footprint of the Androscoggin Mill is getting smaller, we continue to take steps to position the facility as a leading producer for the growing specialty papers market," added, DiSantis.
The products manufactured on the No. 3 paper machine are transitioned to lower-cost machines in other Verso mills. The shutdown will be effective August 1 and is expected to be complete by the end of the third quarter of 2017.
By: Omkar Khalap